Terminologia Offshore Comercial

Family holding trust. A trust that is created specifically to hold the family’s assets consisting of real and/or personal property.

Family limited partnership (FLP). A limited partnership created for family estate planning and some asset protection. It is family controlled by the general partners. A highly appreciated asset is transferred into the FLP to achieve a capital gains tax reduction. Usually, the parents are the general partners holding a 1 to 2 percent interest. The other family members are the limited partners holding the balance of the interest in the partnership.

Flight capital. Money that flows offshore and likely never returns. Flight is exacerbated by a lack of confidence as government grows without bounds.

Foreign. May be utilized in a geographic, legal or tax sense. When used geographically, it is that which is situated outside of the U.S. or is characteristic of a country other than the U.S.

Foreign Investor in Real Property Tax Act of 1980 (FIRPTA). Under FIRPTA and the Economic Recovery Act of 1981, unless an exemption is granted by the IRS, upon the sale of real property owned by offshore (foreign) persons, the agency, attorney or escrow officer handling the transaction is required to withhold capital gains taxes at the closing of the sale transaction. Unless withheld and submitted to the IRS, the party handling the sale transaction is personally liable for the taxes.

Foreign Person. Any person, including a U.S. citizen, who resides outside the U.S. or is subject to the jurisdiction and laws of a country other than the U.S.

Foreign Personal Holding Company (FPHC). Different than a controlled foreign corporation. Discuss with your CPA.

Fraudulent Conveyance. A transfer of an asset that violates the fraudulent con veyance statutes of the affected jurisdictions.